Federal Member for Groom

Media Releases

Local businesses and apprentices to benefit from new $60 million wage subsidy scheme

Wednesday, 31 October 2018

Businesses in the Groom electorate seeking to engage an apprentice for the first time may be eligible for a new trial wage subsidy scheme specifically targeted at rural and regional areas.

The Liberal and Nationals’ Government will invest $60 million to trial a wage subsidy scheme under the Australian Apprenticeships Incentives Program (AAIPP) to encourage employers in regional and rural communities to engage more apprentices.

Federal Member for Groom John McVeigh said under the subsidy, eligible employers within the Groom electorate would be able to receive payments based on the apprentice’s relevant award wage rates.

“Subsidies will be provided at 75 per cent of the apprentice’s award wage in the first year, followed with 50 per cent in the second year and 25 per cent in the third year,” Dr McVeigh said.

“The scheme will support apprenticeships that lead to qualifications on the National Skills Needs List, which includes plumbers, bricklayers, butchers, bakers, aircraft maintenance engineers, hairdressers, mechanics and more.

“This scheme is also targeted at employers who do not currently have apprentices working in the business.

“So if you are a business owner who has considered putting on an apprentice, this is a great incentive to take that next step, support a new apprentice either young or old, and hopefully grow the business.”

Minister for Small and Family Business, Skills and Vocational Education Senator Michaelia Cash said the trial would see up to 1,630 new Australian Apprentices in areas of skills needs.

“There are 3.3 million Australian small businesses which contribute around $395 billion annually to our economy. Small business plays a vital role in our community, from giving young Australians their first real job to supporting our local charities and sporting organisations,” Minister Cash said.

“Through this incentive we are securing the skills our regional and rural businesses need to remain competitive and give local students new opportunities at home.”

Deputy Prime Minister, Nationals’ Leader and Minister for Infrastructure, Transport and Regional Development Michael McCormack said the incentive will provide a much-needed boost to communities throughout regional and rural Australia.

“It’s an incentive that I’m confident will encourage businesses and employers to engage a new apprentice and turbo-charge someone’s future career,” Mr McCormack said.

“This investment from the Liberal and Nationals’ Government is just another practical step to help create jobs and opportunities for small businesses and young people in the regions.

“A VET qualification is every bit as important to the economy as a university degree.

“That’s why our investment in the Skilling Australians Fund – alongside New South Wales, South Australia, Western Australia, Tasmania, Northern Territory and the ACT – is vital to create thousands of additional pre-apprenticeships, apprenticeships and higher apprenticeships.”

The new wage subsidy will complement other incentives currently available through the AAIP and support the engagement of eligible new full-time apprentices at the Certificate III and IV levels in occupations on the National Skills Needs List in regional and rural communities.